KGAL to launch first French real estate fund

German fund manager KGAL has unveiled plans to launch its first investment fund focusing on French real estate in the first quarter of 2011. The fund, which will be dedicated to private investors, will have an initial investment volume of around EUR 100 mln.

KGAL said it has made the first acquisition for the fund with the purchase of a 20,000-m² office building in Paris for EUR 88 mln. The asset is fully leased to BNP Paribas for a nine-year firm term. The building will be completed during October 2010.

The building was acquired on behalf of KGAL as part of a forward purchase deal by Cushman & Wakefield Investors (CWI). KGAL's European portfolio is principally concentrated in Germany, Austria and the UK.

CWI is the exclusive adviser to KGAL in France. Freshfields Bruckhaus Deringer LL and Jusot & Associés were the legal advisors for the purchaser.

KGAL Group develops and manages investments in real estate, aircraft, infrastructure, ships and private equity. It manages an investment volume of EUR 22.7 bn in real estate and investment entities.

CWI is the independent investment management arm of property advisor Cushman & Wakefield. CWI has three main offices in London, Paris and Frankfurt and has EUR 3.3 bn of assets under management in the region

Additionally, KGAL said it has purchased the Sunset Boulevard housing project consisting of 128 apartments in central Frankfurt. The acquisition was made for the spezialfonds KGAL / HI Wohnen Core II, representing a partnership with Hansainvest Hanseatische Investment. The property has 10,000 m² of total space and is now ready for occupancy.

The KGAL / HI Wohnen Core II fund is dedicated to institutional investors and focuses on residential property in Western German cities. The vehicle has so far invested around EUR 205 mln, with plans to bring the total volume to around EUR 370 mln in the coming months.